Terms of auction for the right to use the subsoil at the Aksai coalfield
The organizer of the auction, in accordance with the resolution of Government of the Kyrgyz
Republic dated December 14th, 2012 # 834 is: The State Agency for Geology and Mineral
Resources of the Kyrgyz Republic, the authorized state body.
1. Subject of the auction and general information about the subsoil deposits.
1.1. Subject of the auction: The right to use subsoil deposits, in order conduct exploration for
coal at Aksai coalfield in accordance with the Law of the Kyrgyz Republic "On Subsoil".
The bowel facility, which is being auctioned: Aksai coalfield.
1.2. Form of auction: open
1.3. Geographical location of the subsoil deposits:
The Aksai coal deposits are located in the upper part of the Aksai River, at the northern foot of
Jaman-Davantoo mountain ridge. Geographical coordinates of the coalfield are:
74038’40’’eastern longitude and 41002'00'' northern latitude.
According to the administrative division, the area of the coalfield is subject to Aktala district of
Naryn oblast (region).
The highest elevation of Jaman-Davantoo reaches 4433.8 m. The surface of the coalfield has the
absolute height of 3050 m.
The main waterway of the area is a rough, deep river – Alabuka, flowing 20 km north-west of the
field. Directly across the field runs a small river - Aksay. Aksai River collects water from the
ridge Jaman-Davantoo and flows from south to north. In the summer it nearly dries out in the
middle bottom parts and becomes virtually anhydrous. The Aksai River is an insignificant
watercourse; it has low consumption and temporary flow, only during periods of rainfall and
snowmelt. The River feeds mainly from atmospheric and groundwater.
The relief of Jaman-Davantoo ridge is closely associated with tectonic structure. It is a unilateral
horst formed during the uplifting and unilaterally tilted ground blocks during the Alpine orogeny.
The ridge is located high on major tectonic discontinuities passing at the foot of the northern
slopes and watershed near it. Watershed ridge is rocky, steep and difficult to access. The slopes
upstream the Aksay River are steep.
Forest vegetation is absent. Grasses and shrubs grow mainly on river terraces and in watershed
areas.
The climate in this part of the district is most severe, sharply continental. The majority of rainfall
occurs in November-December and May-June months.
The nearest settlement is the village of Ozgorush, located 30 km away from the field. The
distance from the field to the district center Baetova village is 40km.
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The leading sector of the economy in the area is agriculture – animal ranching and herding with
subordinate agriculture.1
A small business work force named "Aksai" began operating at the field in 1993. In 1993, 1.0
thousand tons of coal was produced. Data on production in subsequent years is not available.
1.4. Dimensions of the licensed area:
Coordinates of the corner points of the licensed area:
##
Y
X
1
13469239
4544864
2
13469284
4545117
3
13471444
4544908
4
13471400
4544690
5
13470593
4544754
6
13470592
4544938
7
13470102
4544940
8
13470073
4544796
Data Tablet K- 43 -102
The licensed area is 43 hectares or 0.43 km2.
2. The geological characteristics of the Aksai coalfield.
2.1. A brief history of scrutiny:
From 1936 to 1939, N.M. Sinitsyn conducted scaling 1:500000 geological survey of the northeastern quarter of the sheet K- 43- B, which includes the list of K- 43 -102. Sinitsyn give a
detailed description of the geology of the northern spurs of Jaman-Davan-Too ridge and first
described the Aksay coalfield.
In 1952, on the square sheet K- 43 -102 Akshiyrakskoy’s expedition o the Kyrgyz geological
department conducted a geological survey on the scale 1:100000 (A.A.Luyk). The Aksai
coalfield was explored by the first expedition who carried out a study of the cut of Jurassic
sediments and coal-bearings. As a result of exploration, the expedition counted indicative
(without categorizing) coal reserves Aksai at 150 thousand tons.
In 1955-1956 "Minmestprom" passed an operational tunnel in the field at the depth of 60m in the
"Main" seam of coal, the work was stopped due to the low capacity of the seam.
In the years 1957-1959 the Alabuka Party (Gilmetdinova N.K.) carried out explorations and the
following volumes of the main types of work:
core drilling -69, 4 linear meters; tunnels and crosscuts -75 , 6 rm; pits with crosscuts -107 , rm
0; ditch -102 , 7 m3.
2.2. Stratigraphy.
Aksai district is composed of sedimentary rocks of the Paleozoic, Jurassic, Neogene and
Quaternary sediments.
Paleozoic deposits are sediments of the Lower Carboniferous (C12). They are a rather
monotonous stacked limestone strata, mainly fine and semi-layered, from light gray to black.
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Reddish and pale pink color is natural for these places. Throughout the thickness of the limestone
there is found an abundant fauna of bryozoans, brachiopods, corals, and foraminifera. Based on
the definition of the age of the limestone’s fauna belongs to the upper - low Visean. The total
capacity of Visean deposits is 2540 m.
Jurassic deposits (J) are developed in the upper Aksay River, on the tectonic development of the
interface between the Neogene sediments and Paleozoic ridge Jaman-Davantoo. Here, near a
major tectonic fault, between two narrow blocks, the Neogene and Paleozoic sediments are
sandwiched by low-power Jurassic strata. Jurassic rocks are exposed in the cliffs near the river
terrace along the Aksay River bed and spread further to the east and west by Quaternary deposits
3 km. east of the deposit a landslide unveiled Jurassic sediments.
Formations of Jurassic rocks are mainly on their heads, along the strike they are experiencing a
slight deviation from the vertical seams and lean ti the north and to the south. The southern
boundary of the contour of Jurassic deposits is hidden by the powerful sediment of gravel
terraces of Aksay River; they are conditionally held by tectonic thrust, the northern passes along
steeply dipping to the north tectonic contacts and is replaced by flat-lying strata of
undifferentiated Neogene conglomerates.
The structure of the Jurassic sediments is mainly assembled of clastic rocks, rarely coals.
Siliciclastic sediments are represented by all rock types, ranging from clays to conglomerates and
breccias.
Frequent alternation of rocks on the field does not allow separating the individual marker
horizons, the individual bands of rock often wedge out and complicate the comparison.
In lithological relation, the Jurassic deposits are interbedded strata conglomerates, red sandstones
from fine-grained to medium, off- yellow, silty mudstone rock - gray to dark gray, brecciated
rocks, clay - red portions of sanding, viscous carbonaceous clays pro-stratum and coal seams.
Full power Jurassic strata has not been established, opening exploration working capacity
reaches 80m. The age of Jurassic sediments presumably dates from the Middle lows of Jurassic
period, based on the results of spore-pollen analysis of several coal samples.
Neogene sediments (N) are represented by undifferentiated thickness of fawn conglomerates.
Pebble conglomerates are stacked sandstone, limestone, quartzite and volcanics. Cement is sandy
loose. Fragments are rare well-rounded pebble conglomerate. In contact with the Jurassic
deposits conglomerates have light brown color. Contact between the Jurassic and Neogene
sediments is tectonic.
Quaternary deposits are composed of alluvial and proluvium-alluvial formations. Alluvial
formations are represented by pebbles, gravel and sand. They are confined to the river valleys.
Proluvium alluvial formations consist of boulders and gravel. The power Quaternary sediments
reaches up to 50 m.
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2.3. Tectonics.
Structurally, the deposit is confined to the northern wing of the anticline. Anticline axis extends
in a latitudinal direction south of the deposit. The north wing of the anticline has a steep northern
fall, reaching 60-700. It is ripped by a series of parallel steep latitudinal fractures.
The largest fracture is the Aksai district fracture, which has a latitudinal nature. The fracture is
traced from west to east across the rivers Koksai, Aksai, and Zhamandavan. In some places of
the fracture there are natural water springs. Parallel to the Aksai fracture, near the rivers Aksay
and Koksai there are a series of small fractures.
The Aksai output of Jurassic deposits is sandwiched between two steep fractures, where the
Jurassic rocks are bordered by an array of Paleozoic rocks of Jaman-Davantoo ridge and northern
Neogene sediments. The fall of the northern plane fracture (between the Jurassic and Neogene) –
is steep (azimuth 3600, angle 60-800). Southern contact of Jurassic rocks of Paleozoic sediments
are not opened.
Jurassic deposits have southeastern stretch with vertical angles of incidence.
2.4. Carboniferous.
Carboniferous on Aksai is confined to the Jurassic sediments. The Jurassic sand-clay sequence is
marked by layers and several different power sub-layers of coal of which only one layer of
"main" deposit is most sustained along strike and has the greatest length of about 900 meters.
The remaining coal seams and streaks are badly traced and the assessment of their consistency
can be made according to the adits 1, 2 and 3. According to these adits, the layers and interlayer
galleries have poor consistency and pinch out to the east and west from the central portion of the
deposit. The "mail" simple coal seam, and complex structures in lesser amounts are represented
mainly by matted charcoal sites, sparkly at some points, black, heavily disturbed, with layers of
rocks and slickensides, with nests of pyrite.
Soil and roofing of the "mail" coal seam intersections is represented mostly by clays, and rarely
by sandstones and conglomerates. The "main" coal seam is characterized by intemperate power
along strike and down deep.
The nominal power of reservoir in areas of blowing reaches 6.20 meters, pinch - layer conductor
enters the reservoir presented viscous carbonaceous weight capacity of up to 5 cm. Sudden
power fluctuation of the "main" and other coal seams is due to the constrictions and shearing and
tectonic disturbances.
On the surface of the "main" layer there are traces of mining systems - pits with crosscuts, the
distance between which ranges from 15 to 65 m, averaging 35 m
In addition, the "main" layer from the surface is traced by ground geophysical work - electrical
profiling method and charge. At deeper levels the reservoir is crossed by adits number 1, 2 and 3.
Adit number one is given the starboard of Aksay River and traversed 60 m on the "main" seam
of coal; it was stopped due to a sharp decrease in power of the coal seam. The short-lived adit
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number 2 is located on the left slope Aksay River; it was closed due to thinning of coal seam at a
tectonic disturbance.
Adit number 3 revealed the formation along the strike, over 439 m. According to the adits, the
"main" seam is not consistent along the strike and has a working capacity only in limited areas of
the field, forming two isolated lenses. No changes in capacity and structure formation are
observed.
On the western area of the seam, the thickness ranges from 0.35 m to 5.60 m to the west of the
deposit formation wedges.
In the central part of the field, the “main” seam is located under the erosion cut of the Aksay
River and partially, over 60m is worked by operational adits of “Minmestprom” (Ministry of
Industry). In the eastern part of the field, the capacity of the "main" formation varies from 0.05 m
conductor capacity to working capacity of 6.90 m. The working power is marked in areas of
blowing coal seam on the horizon adit number 3 and on the surface of adits number 4, 8, 11 and
19. Within the blow, limited by adits number 4, and 11, and 3, the stretch of 100 m thickness
varies from 1.0 m to 6.90 m. Within the blow, limited by adits number 19, 8, and 4, and 3, a
stretch of 150 m thickness varies from 1.3 m to 4.2 m. To the east of swells, thinning of the
"main" formation is observed.
2.5. The quality of coal and technological properties.
In appearance, the coal in the field is black, matted, with shiny patches in some places, strong,
half baking, and burn with smoky flame. The mechanical strength of coal is low, due to its
fractured nature.
Table 1 summarizes the qualitative characteristics of the main seam coal field according to
samples taken from the mine workings and boreholes.
Table 1
External
Analysis
Ash content Total
Devolatilization Specific heat of
moisture
moisture
sulfur
combustion
Wrех, %
Wa, %
Ad, %
Sdt, %
Vdaf, %
Qdaf,
Micro
joel/kg
1
2
3
4
5
6
3.73-15.48
8.54-17.56
3.84-25.57
0.89-2.99
23.52-32.28
22.55-31.01
10.65(8)
11.14(17)
11.0(17)
1.55(17)
28.43(17)
28.24(17)
Table 2 gives the elemental composition of the main coal seam.
Table 2
Carbon
Cdt, %
1
74.28-78.70
77.18(9)
Hydrogen
Hdt, %
2
3.67-4.41
4.16(9)
Nitrogen
Nd, %
3
3.4-4.8
4.03(9)
5
Oxygen
Od, %
4
16.89-22.05
18.66(9)
The largest yield of volatile substances and elemental composition of main coal seam deposits
belong to the stage of metamorphism of coal, and at the average index of the specific heat of
combustion of lignite to the stage of metamorphism.
Petrographic composition and technological properties of coal deposits have not been studied.
Due to the lack of classification indicators, it is impossible to determine the brand of coal.
Coal deposits were subjected to spectral analysis to determine the concentration of germanium
and other traced elements. Higher germanium content in the samples number 2 - 0,007 selected
by slit number 1, # 23 - 0,005 from the adits number 3 and number 8 in the sample - 0.01
selected by crosscuts number 8, passed in an adit number 3, in other samples absence of
germanium was noted.
The content of other elements is of no interest.
Hydrogeological and geological conditions of the coalfield have not been studied.
2.6. Reserves.
According to the results of work conducted in 1957-1959 there was a count of the reserves of
thermal coal in the "main" seam. The minimum capacity of adopted calculation was 1.0 m. The
maximum adopted ash content - 10, 4 %. Estimated reserves totaled by category:
In - 17544 tons, C1 - 44073 tons, C2 - 121213 tons , total - 182 830 tons (182.8 thousand tons).
These reserves are not approved and are NOT listed on the balance sheet.
In 1993, LLC “Doris” tested some reserves in the amount of 22.2 thousand tons and produced
1.0 thousand tons. Currently, the above listed reserves are licensed for development by the LLC
“Kautar”.
3. Basic requirements for the subsoil use of the object.
3.1. Basic requirements for subsoil use of the object are specified in accordance with the
legislation of the Kyrgyz Republic related to the subsoil use and should be included in the
subsoil license. Detailed requirements are specified at registration of license in the licensed
attachment.
3.2. The main requirements for the use of the licensed area are:
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Conclusion of a licensed attachment for the drafting of work designed to mining of
licensed area;
During the design the adjustment on the licensed area with the entering of the reserves
on the state balance;
Submission, within the time specified in the licensed attachment period, of the
operations plan designed to mining of licensed area, passed examination in respect of
industrial, environmental safety and subsoil protection, as well as Certificate for
temporary use of plot for subsoil use;
Submission of semiannual information on progress of conditions of the licensed
attachment until July 15 of this year;
Submission of annual report till January 31 of the new year, in the prescribed form,
approved by the authorized state body for the implementation of the state policy on
subsoil use and on electronic media;
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Submission of program (plan) for the development of mining work until January 31 of
the new year;
Performance of all required types of mining operations in strict accordance with the
project, which has been examined in the industrial, environmental safety and protection
of mineral resources;
Development of the Action Plan to ensure the requirements of industrial safety at work,
including the prevention of accidents and their consequences localization with required
justifications and calculations as at the site and as a result of accidents at other facilities
in the area of the object. In developing these measures should be considered hazards
(landslides, avalanche danger, etc.), risk factors, conditions for the occurrence of
accidents and their scenario, the number and placement of production staff;
Involving local people in mining operations through training, advance training, retraining in educational institutions of the Kyrgyz Republic;
Technical and biological reclamation of disturbed soils in accordance with the design
decisions which are passed examination for industrial, environmental safety and subsoil
protection.
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4. Time and place of the bidding: Auction will be held on February 3, 2014 in the assembly hall
of Kochkor regional state administration in Kochkor village of Naryn oblast (region).
Registration for the bidding will take place from 12-00 to 12-50. Starting time of the bidding is
13-00.
5. Applications are accepted from December 17th 2013 till January 31, 2014 daily on working
days from 9-00 to 15-00 by Licensing Department of the State Agency for Geology and Mineral
Resources under the Government of the Kyrgyz Republic, office No. 220.
6. Place and time for familiarization with the terms and conditions of the bidding:
Licensing Department of the State Agency for Geology and Mineral Resources under the
Government of the Kyrgyz Republic, office No. 311/2, every day from 9:00 to 18:00 hours.
7. To participate in the bidding the bidder personally or by the authorized representative is
submitting bid to the auctioneer till 15-00 hours of January 17, 2014, inclusively, in duplicate, in
the form prescribed by the auctioneer and posted on the official website of the auctioneer:
www.geology.kg.
Filing by mail is not allowed.
Auction participation application for subsoil use of objects should be filled by a computer
approach in state and/or official languages, printed by electronic printers.
Bid should be attached by the following documents:
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Copies of the founding documents and the certificate of incorporation;
A copy of the certificate of state registration of the citizen as an individual
entrepreneur;
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A copy of the appointment of the executive body of the organization;
Power of attorney to the representative, executed in accordance with the legislation of
the Kyrgyz Republic, where a person would act by his representative;
document evidencing of payment of the guarantee fee;
A document confirming payment for tender fee;
A foreign entity additionally submits legalized extract from the state register or other
certificate that it is a valid legal entity under the laws of their country;
Companies registered in the Kyrgyz Republic, including subsidiaries of foreign
companies registered in the Kyrgyz Republic, additionally submits a certificate of tax
service on the absence of overdue tax debts.
Bid submission is considered as consent of the bidder with all the terms of the bidding.
Certificates and documents executed by the bidder, signed by an authorized person and stamped
by bidder.
Copies of the documents should be submitted duly certified.
Constituent and other documents submitted by the foreign entity should be apostilled and
submitted their notarized translation into the state and/or official languages.
All the above mentioned documents should be delivered to the auctioneer along with the bid.
Application materials received after the bid submission deadline would not be registered and
returned to the bidder.
8. The successful bidder, who signed the minutes of the bidding results, pays all established
under legislation payments to the budget of the Kyrgyz Republic.
9. The tender fee in amount of 10,000 (ten thousand) soms paid by the bidder to the special
account of the auctioneer:
State Agency for Geology and Mineral Resources under the Government of the Kyrgyz Republic
Beneficiary: Pervomay ROK (District Branch of Treasury)
Beneficiary`s Bank: Bishkek branch of OJSC RSK Bank in Bishkek city
Settlement/account 1290522382820060
Personal/account 4402011103011808
BIC (MFO) 129052
TIN 03010199610110
OKPO 05804223
STS: 004 Pervomay rayon (district)
Payment code: 14238900 in the bank
Purpose of payment: to the State Geology Agency for tender fee or for the guarantee fee
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Tender fee is not subject to return, except in case of cancellation of the bidding, or when the
bidder withdraws its bid prior to the start of bidding, or would not be allowed to participate in the
bidding. In case of return of the tender fee, it is payable to the bidder within 30 banking days.
10. Guarantee fee in the amount of 2000 (two thousand dollars), paid by the bidder in the
national currency at the exchange rate of the National Bank of the date of transfer or guarantee
fee to the special account of the auctioneer specified in paragraph 9 of this document.
Guarantee fee is refunded to the bidder/participant within 30 banking days from the date of
signing of the final minutes of the meeting of the tender committee.
A bidder, who refused to sign the minutes of the tender as a successful bidder, is eliminated from
the number of bidders. Contributed by him guarantee fee is not refundable.
11. The starting price of the auction subject is 200 (two hundred) US dollars.
12. Bid increment is set at 20 (twenty) U.S. dollars, the maximum increment - 2000 (two
thousand) US dollars.
13. The bidding is acknowledged as void in following cases:
1) In the absence of bids or if only one bid is submitted;
2) To participate in the bidding admitted only one bidder or no one is admitted;
3) To participate in the bidding, only one registered bidder or nobody is registered;
4) Bidders offered a price not higher than the starting price.
14. The successful bidder is the bidder who offered the highest price for the lot. On the day of
the bidding, the successful bidder signs the minutes. Refusal of the successful bidder to confirm
its results the same day (i.e. refusal to sign the minutes) or non-payment of his proposed price for
subsoil use within five banking days after the signing of the minutes on bidding is deemed to be
a waiver of subsoil license of object, the guarantee fee is not refundable.
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